Mahindra Logistics Q2 net loss narrows to Rs 11 cr

Revenue from operations grew by 11.45% to Rs 1,521.10 crore in Q2 FY25 as compared to Rs 1,364.76 crore recorded in Q2 FY24.

The company reported a pre-tax loss of Rs 4.97 crore in the September 2024 quarter as against a pre-tax loss of Rs 8.17 crore reported in the corresponding quarter previous year.

Total expenses jumped 9.84% year on year to Rs 1,225.81 crore during the quarter. Employee benefits expenses stood at Rs 72.88 crore (down 0.99% YoY) and finance cost stood at Rs 12.20 crore (up 15.53% YoY) in Q2 FY25.

EBITDA was at Rs 66.4 crore in Q2 FY25, up 24% as compared with Rs 53.6 crore posted in Q2 FY24. EBITDA margin remained constant to 4% in Q2 FY25.

The logistics solution provider's revenue from supply chain management stood at Rs 1,441.43 crore (up 12.74% YoY) while enterprise mobility services was at Rs 81.12 crore (down 6.80% YoY), during the period under review.

Rampraveen Swaminathan, MD and CEO, Mahindra Logistics, 'During the quarter, we saw strong revenue performance with year-on-year growth of 11.5%.Our 3PL contract logistics, cross border and last mile delivery segments registered strong growth driven by account additions, new offerings and a stable cross border pricing environment. During the quarter, we expanded our offerings for transportation & green logistics.

We continue to expand the overall network, with new infrastructure expansions in the east to support warehousing, last mile and express segments, which should help drive future growth. With the upcoming peak in Q3, we have expanded capacity and resources in contract logistics and last mile delivery, having a seasonal impact on operating earnings in the quarter. A soft demand environment and operating conditions impacted the express business. We believeH2 will be stronger driven by the festive peak and impact of margin improvement programs across all the businesses.'

Mahindra Logistics (MLL) is an integrated third-party logistics (3PL) service provider, specializing in supply chain management and enterprise mobility. The company serves over 400 corporate customers across various industries like automobile, engineering, consumer goods and e-commerce.

The counter declined 4.85% to Rs 468.05 on the BSE.

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